Quick verdict: ADI vs KLAC in 2026

In this detailed adi vs klac stock comparison 2026, Analog Devices (ADI) demonstrates an overall edge, winning 6 of 10 comparable metrics according to our scorecard. KLA Corporation (KLAC) stands out as the growth leader and boasts a superior net profit margin. Meanwhile, ADI appears to offer a more compelling relative value proposition across several metrics and is the clear analyst favorite with a higher percentage of ‘Buy’ ratings. Not investment advice.

ADI vs KLAC: key metrics side by side

Full side-by-side comparison of ADI and KLAC across valuation, profitability, growth and analyst sentiment. Data updated 2026-05-07.

ADI vs KLAC valuation comparison

When considering adi vs klac fundamentals and valuation, both companies operate in demanding technology sectors, often commanding premium valuations. KLA Corporation (KLAC) currently trades at a P/E ratio of 50.91x, which is lower than Analog Devices’ (ADI) P/E of 75.07x. This suggests that, on an earnings multiple basis, KLAC might appear relatively cheaper to investors. However, a deeper look reveals more complexity.

Analog Devices boasts a significantly lower Price-to-Book (P/B) ratio of 6.01x compared to KLAC’s much higher 40.78x, indicating ADI’s stock price is more aligned with its book assets. Furthermore, both companies are trading well above their discounted cash flow (DCF) estimates, implying significant overvaluation by this metric. ADI’s DCF suggests a -50.1% downside from its current price, while KLAC’s indicates a more severe -65.6% downside. This comparison in adi vs klac valuation highlights that while KLAC has a lower P/E, ADI appears less overvalued based on its P/B ratio and less aggressive DCF discount, making the “cheaper” label depend heavily on the valuation metric prioritized.

ADI vs KLAC growth comparison

In terms of growth momentum, KLA Corporation (KLAC) exhibits a stronger top-line expansion with a year-over-year revenue growth rate of 23.9%, surpassing Analog Devices’ (ADI) growth of 16.9%. KLAC also reports higher total revenue, at $12.16 billion compared to ADI’s $11.02 billion. This indicates that KLAC has been capturing market share or benefiting more substantially from industry trends in the recent period. For investors prioritizing rapid expansion, KLAC currently holds a distinct advantage in this adi vs klac growth comparison.

However, while KLAC shows superior revenue growth, ADI maintains a slight edge in EBITDA margin at 46.99% against KLAC’s 45.06%. KLAC, however, demonstrates a much stronger net profit margin of 35.66% versus ADI’s 23.02%. This suggests that despite ADI’s slightly better operational efficiency at the EBITDA level, KLAC is more adept at translating its revenue into bottom-line profit. Both companies operate in an industry demanding high capital expenditure and innovation, and their ability to sustain such growth rates will be key for future performance.

ADI vs KLAC profitability

Examining the profitability metrics for our adi vs klac stock comparison 2026, KLA Corporation (KLAC) demonstrates a significant lead in net margin, achieving 35.66% compared to Analog Devices’ (ADI) 23.02%. This indicates that KLAC is more efficient at converting its revenue into actual profit for shareholders after all expenses, including taxes, are accounted for. Such a robust net margin suggests strong operational control and potentially higher pricing power within its specialized segment of the technology market.

When it comes to generating free cash flow, Analog Devices (ADI) offers a Free Cash Flow (FCF) yield of 2.25%, which is superior to KLAC’s 1.69%. A higher FCF yield is often preferred by investors as it represents the cash generated by the company that can be used for debt repayment, dividends, share buybacks, or future investments, relative to its market capitalization. Although both companies report “N/A%” for Return on Equity (ROE), ADI’s better FCF yield implies it generates more readily available cash for its investors compared to KLAC.

Analyst ratings: ADI vs KLAC

The analyst community shows a generally positive outlook for both Analog Devices (ADI) and KLA Corporation (KLAC), with both stocks garnering a “Buy” consensus rating. However, a deeper dive into the specifics reveals a preference for ADI. Analog Devices is covered by a larger pool of 54 analysts, with a substantial 79.6% recommending a ‘Buy’. In contrast, KLAC is tracked by 44 analysts, with 63.6% issuing a ‘Buy’ rating. This stronger conviction for ADI suggests that a greater proportion of market professionals see a favorable investment case for the company.

Despite ADI’s higher ‘Buy’ rating percentage, KLAC currently presents a more attractive analyst price target upside. KLAC’s consensus target price of $1819.38 suggests a modest +0.2% upside from its current trading price of $1816.29. Conversely, ADI’s consensus target of $378.56 implies a potential -8.9% downside from its price of $415.63. This difference highlights that while more analysts are bullish on ADI, those covering KLAC foresee a clearer, albeit minimal, near-term price appreciation potential, making this a key consideration in any adi vs klac stock comparison 2026.

Should I buy ADI or KLAC stock in 2026?

Deciding whether you should buy ADI or KLAC stock in 2026 depends heavily on your investment priorities, particularly your appetite for growth, value, and income. For growth-oriented investors, KLA Corporation (KLAC) appears to be the stronger contender due to its significantly higher year-over-year revenue growth of 23.9% compared to Analog Devices’ (ADI) 16.9%. KLAC’s larger revenue base and superior net profit margin also suggest a company with strong operational leverage and a robust market position, driving its momentum in the current market cycle.

From a value investment perspective, the choice between ADI and KLAC is more nuanced. KLA Corporation has a lower P/E ratio of 50.91x compared to ADI’s 75.07x, which might appeal to those prioritizing earnings multiples. However, Analog Devices offers a much more attractive Price-to-Book ratio of 6.01x versus KLAC’s 40.78x, and its Discounted Cash Flow (DCF) valuation shows a less severe implied overvaluation. Therefore, investors prioritizing asset-backed value and a less aggressive DCF outlook might find ADI’s valuation more appealing, despite KLAC’s lower P/E, when evaluating adi vs klac fundamentals and valuation.

For income-focused investors, neither ADI nor KLAC stands out as a primary dividend play. Analog Devices offers a minimal dividend yield of 0.01%, while KLA Corporation currently has a 0.0% dividend yield. This reinforces the view that both stocks are primarily growth plays within the technology sector, with any income component being largely negligible. Ultimately, the decision on should I buy ADI or KLAC stock 2026 will hinge on whether you prioritize KLAC’s superior growth and net margins, or ADI’s more favorable valuation on P/B and DCF, coupled with higher analyst conviction. This is not investment advice; always conduct your own thorough research.

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FAQ: ADI vs KLAC